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use the following information on states of the economy and stock returns to calculate the expected return for Dingaling Telephone. state of economy probability of
use the following information on states of the economy and stock returns to calculate the expected return for Dingaling Telephone.
| state of economy | probability of state of economy | security return if state occurs | |
| recession | .30 | -8% | |
| normal | .40 | 13 | |
| boom | .30 | 23 |
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Public Finance
Authors: Harvey S Rosen
7th Edition
0072876484, 978-0072876482
